general liability coverage issues and solutions september 17, 2014
TRANSCRIPT
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General Liability
Coverage Issues and Solutions
September 17, 2014
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SpeakersPam Ferrandino
Executive Vice President
National Practice Leader Casualty, Placement
Willis NA
212-915-7928
Jim Hensley
Regional Practice Leader Claims
Willis NA
303-765-1593
Steven Sachs
Executive Vice President
Director of Real Estate and Hotel Practice
Willis NA
(410) 584-8935
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Session Objectives
Identify potential issues
Provide possible solutions• Risk management actions• Additional coverage endorsements• Coverage modifications
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What to Take Away
Strategies for internal discussions with legal
A better understanding as to impact of ISO 2013 changes
Identification of other GL coverage issues to be addressed contractually Confirming the UW and Claims are on the same
page Policy Workshop with internal team and your
broker is good risk management
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Indemnity Agreements Anti- Indemnity Statutes
• Limited, Intermediate, Broad
• Anti-Indemnity Legislation/History
• Jurisdictional Differences
• Additional Insured Clause
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Indemnity AgreementsPERMISSIBLE INDEMNITY UNDER CONSTRUCTION
ANTI-INDEMNITY STATUTES
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Concurrent Negligence
AlaskaArizona*ArkansasGeorgiaHawaiiIdahoIndiana*MarylandMassachusettsMichigan
New JerseyPennsylvania*South CarolinaSouth Dakota*TennesseeUtahVirginiaWashingtonWest Virginia
Indemnitor's Negligence Only
Arizona*California*ColoradoConnecticutDelawareFlorida*IllinoisIowaKansasKentuckyLouisianaMinnesotaMississippi
MissouriMontana*NebraskaNew HampshireNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonRhode IslandTexas*
Source: IRMI
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Additional Insured Endorsements – A History CG 2010 (11/85) “liability arising out of” Ongoing and Completed Operations 1993 Removal of Completed Operations
CG 2010 (10/01) and CG 2037 (10/01) Reinstated Completed Operations Achieve 11/85 coverage with two forms
CG 2010 (07/04) and CG 2037 (07/04) “Caused in Whole or in Part by”
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2013 Substantive Changes
Limits coverage only “to the extent permitted by law”
Additional Insured coverage will not be broader than that to which the named insured is required by contract to provide
The amount the insurer is required to pay out is limited to the lesser of the limits of insurance or the amount required by contract
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Other Additional Insured Endorsement Changes
CG 2038 (04/13) Owners, Lessees or Contractors
CG 2001 (04/13) Primary and Non-Contributory
“TAKE AWAYS” Compliance Outcomes Consistent with Intent Future of Anti-Indemnity
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Vendors and Service Contracts
Indemnification
Completed operations
Limits
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Property Damage Exclusion for Real Estate Property
Managed CG 22 70
This insurance does not apply to "property damage" to property you operate or manage or as to which you act as agent for the collection of rents or in any other supervisory capacity.
With respect to your liability arising out of your management of property for which you are acting as real estate manager this insurance is excess over any other valid and collectible insurance available to you.
Waiver of Subrogation
Legal Liability (CP 00 40)
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Hotel Management Agreements
Manager should be an additional named insured if owner purchases insurance
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Financial Services Endorsement
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CG 21 52 04 13
•“This insurance does not apply to "bodily injury", "property damage" or "personal and advertising injury" resulting from the rendering of or the failure to render financial services by any insured to others. For the purpose of this exclusion, financial services include but are not limited to: “
• Financial Services is “undefined”?
• Solution – Don’t Accept
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Cyber Endorsements/Languag
e“Internet of Things” – Malicious Refrigerator Hacking
ISO CG 21 06 05 14
• Electronic Data Liability – Give Back
• Definition of Bodily Injury
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Summary
Evolving Risks
Policy Workshops
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Questions?
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